Walmart (WMT) Q1 2022 earnings call transcript

I would now like to hand over the call to your assistant, Dan Bender from the investment relations department. Thank you, Robo. Thank you for watching.

Good morning and thank you for joining us today. Our results for the first quarter were strong. We are pleased with the growth of our sales and the growth of the profit of the balance share by 43% compared to last year. We achieved a strong performance in all three sectors. With the continuation of the pandemic, it affects the countries in which we work in different ways. Therefore, our team is determined to overcome the challenges and present the strong results that we share today. We give our gratitude to all our colleagues for their dedication to the service of others. It has 2021 unique challenges and uncertainty that it has to overcome, but it is more optimistic than it was at the beginning of the year for several reasons.

In the United States, it is clear that economic motivation has a lasting effect. We also see encouraging indicators that indicate the desire of our customers to go out and market. And our performance improves despite the challenges imposed by the pandemic. It is possible that the second half of the year will witness more uncertainty than the normal years. But we are satisfied with our current position. Our stores are increasing in strength and our abilities in the field of electronic trade are expanding with the continuation of our growth. Customers will tell us how and when they want to shop and they will find us ready to shop in the store or receive their orders themselves or deliver them to them.

The main elements of our strategy are complete in an excellent way. We have seen a speedy movement of visitors in our stores and we have gained a market share in the retail sector and we have improved the storage levels. and we achieved growth in the global trade sales of 43% of the fixed currency, except for the last losses. And on a global level, the electronic trade now represents more than 12% of the total sales of the company, with an increase of 340 main points from last year. Looking to the future, we will overcome the challenges of the supply chain and the inflationary pressure, whether in the cost of goods or wages. We will monitor the price gaps and make the necessary adjustments with the supervision of our clients and investors.

And in what concerns the Covid-19 pandemic, the past few weeks have been more difficult in some countries. India, Canada, Chile and South Africa are currently one of our priorities. And our employees' support is the core of our main focus. But we also invest our resources to support these countries as much as we can. In India, we donate oxygen centers, personal protective equipment and financial support.

As for people's help in feeding, we work in several countries. In the United States, we have given millions of doses and we take steps to encourage our employees and everyone to feed. And based on the directions of the Centers for Disease Control and Prevention, it is possible for our employees in the United States who received the work of feeding without a mask if they want to do so. We have added a critical trigger as an additional step to encourage feeding. All Walmart and Sam's Club pharmacies in the United States provide us with appointments and we can provide them without the need for a previous appointment. We also cooperated with local and national organizations to support more than 200 social activities in all parts of the country so far.

In India, we facilitate the access of our employees and their families, in addition to our colleagues with Philip Kirt and Fonbai, to meetings for more than 100,000 people in all the countries we work in. We will continue to search for more opportunities to create a difference. This pandemic will not end until it ends for all. In addition to the fight against the pandemic, we also announced a new commitment to the American industry during this quarter. Over the next 10 years, we set a goal to buy products worth $350 billion in addition, whether they are manufactured or grown or collected in the United States. We estimate that this commitment will contribute to creating more than 750,000 new jobs in America and avoiding the emission of 100 million tons of carbon dioxide.

We also strive to facilitate the prosperity of the industry in the United States. This is why we launch the American Home Initiative. We will gather partners from the community of employers, the academic and government centers, in addition to other parties to determine and overcome the obstacles that are facing without production in the United States. We also have other exciting news to share with you as we continue to invest in future technologies. In cooperation with the North American company NG America, specialized in power generation and service delivery, We add more than 500 megawatts to the American renewable energy network through three separate wind energy projects. It is expected that these projects will provide hundreds of shops, warehouses and distribution facilities with annual renewable energy.

This renewable energy is enough to provide more than 240,000 American households with energy for a year. This in addition to four megawatts of renewable energy that our projects currently provide at the global level. This is another example of the important work that we do to become a sustainable company. And now, let's talk more about our results for this quarter. Walmart achieved another strong quarter in the United States. Our team has provided the best services to our customers while they are shopping in our stores and through the Internet. The additional government-funded payments also contributed to this growth. Our sales have achieved a strong growth of 6%, with a growth of 37% in the electronic trade. This growth includes wide-ranging products, including clothes, home appliances, construction goods, and seasonal products.

I was recently visiting shops, shops and the supply chains in New Jersey, Delaware, Washington City, Ohio, New Mexico, Texas, Illinois, California and Florida. I am still filled with the efforts that our colleagues are making, and I am amazed by their high spirit. They work safely in the face of the pandemic, they improve our savings and our standards, and they make a small effort to meet the requirements of the reception and the delivery, and they feed millions. The realization of all these things at one time is not easy, and we have faced our challenges. But our colleagues continue to work hard instead of more, and they strengthen our position at the same time. In the United States, our business in the field of direct sales is strong, but we also make good progress in other important parts of our business.

Our electronic market, the overall value of the sales products, the delivery services, and the ad entry with the Walmart Connect platform are all strong. We are working on building a growth system that we presented to you in February. We can provide all elements of our business model with the best service for customers with the development of our model. As we mentioned earlier, the success journey begins by being the first choice for the marketer. Among these activities are the process of renewing stores, investing in the services of reception and delivery, and the sales of Walmart Plus services. We need a greater production power to meet the increasing demand, and we are still convinced that these investments are necessary.

This is one of the keys to increasing the sales of Walmart Plus memberships, which is a key focus in our long-term strategy. In addition to working on developing our business model, we will continue to add a Thank you. with a better experience in the field of health care. Our acquisition of MMD is a big step in this direction. And the addition of health care services is a very important matter. Just as we do with the basic care sector. We build health and welfare businesses in multiple channels. And at Sam's Club, the volume continues. Our products are constantly improving. Our organic growth and sales are strong. The team continues to add and expand a range of services such as the service of receiving from the car.

We witness strength in the groups associated with social gatherings, as well as an increase in the activity of the company's members, and there are other groups such as the restaurants to appear strongly. We have seen a huge growth in the membership during the quarter, and the total number of members reached the highest level at all. As is the case with our original businesses, the government's incentives have contributed to improving our results, but I am confident that the main businesses are strong and are moving in the right direction for the benefit of our members. Our international team has been working to transport our businesses to markets with higher growth, and these efforts have been worth it.

As you remember, we have We have left our work late in the United Kingdom, Japan and Argentina. As a result, the sales volume decreased by about 11% on a yearly basis. And based on the direct comparison, when the markets were moved away, which was recently acquired, the sales volume rose by 5.1%. These are good results and show the sector's ability to achieve growth for the company. In India, during the first quarter, all of Flipkart and Foy achieved strong growth, The price of the annual total revenue in PhonePay has risen by more than 150% compared to last year. In Flipkart, the number of active customers and users is one of the most important indicators, and we are achieving good performance.

Our latest announcement confirms our intention to invest in ClearTrip, a leading company in the field of travel through the Internet, committed to transforming customer experience through digital trade. It means that our business owners base needs to be able to add new capabilities, including services such as logistics and data storage. The partnership that was recently announced with Duny Group will help us achieve this. WMX is still strong, and the growth has begun. Our assets in this market enable us to serve our customers in new ways, and they are responding to that. In Mexico, sales and e-commerce have risen by 166%, and the delivery service has now become available on 680 sites. As is the case in the United States, we are working to expand our business to include what is more than just traditional trading.

One of the most prominent areas in which we witnessed a growing is the advertising sector, which witnessed an increase of more than 100% in the number of new advertisers and the new mobile phone service network that provides voice, data and home internet services, which allows our customers to access our service and add real value. We have doubled the number of users of these services during the quarter, And with the entertainment of Chinese customers with the ease of adding data to their accounts directly after payment, our work in the field of e-commerce and the Sam's Club club has been welcomed by many customers and members. And thanks to the strong performance during the new Chinese year, the club achieved strong sales in all categories, which led to a growth in sales compared to more than 10%.

We also achieved growth in e-commerce sales by 60%, in addition to the amazing growth that we achieved last year. And the results of our work in Canada were good even with the increase in closing operations during the quarter. We started with strong sales in the online shopping and trading, but the restrictions related to the COVID-19 pandemic on the sale of some types of goods at the end of the quarter have negatively affected our performance. However, our main work is strong, and we are confident of our model of multiple channels in this market. I conclude today's speech by thanking everyone for this special quarter. Everything starts with our employees and their focus on serving our employees and members.

We adopt a progressive approach and strengthen innovation and speed. We are working hard to acquire new skills and develop our current skills. We will continue to advance faster with our investment in the main areas to accelerate growth in the future. Thank you for your interest in our company. Now, I will leave the field to Birit.

Thank you, Kiado. We are happy with the strong results of the first quarter and the continuous growth in our business with strong growth in sales and profits. And while the motivational spending has contributed to improving the results, it is to our pleasure that we see the continuous progress in our main works with our application for the basics and progress in our multi-channel strategy. New companies are witnessing within our system, such as advertising and distribution services, a rapid growth, which improves the profits and allows us to continue investing in our priorities for the other strategy. We have set our unique principles and the value of our products and our financial strength in a competitive site that is excellent for achieving success, with the stay of the client as our focus in everything we do.

And as we expect, we are witnessing a growth in our market share in the retail sector in the United States compared to last year, according to the company. The value and diversity in products will continue to attract customers, as well as the comfort that we provide through comprehensive marketing options. And now let's discuss the results of the first quarter. As we mentioned before, disasters in the United Kingdom, Japan and Argentina greatly affect annual comparisons, and we have explained the expected impact of these disasters on the main financial indicators when we present our guidelines in February. Therefore, the comments of the day will focus on the performance of the main company, except for the impact of these disasters.

The US dollar's net worth has grown by 5.8% to more than $132 billion, with the continued improvement of the main business indicators, while the US dollar has benefited from the incentive spending even compared to the previous year's consumer storage and the initial incentive. Walmart's dollar was more than expected in the United States, where it rose by 6% during the quarter and 16% over the course of two years, and the Sam's Club dollar grew by approximately 11% with the exception of fuel and tobacco. The global dollar's growth was strong, as it increased by more than 5% with the net with strength in India, Canada and China. And internationally, the growth of the sale of electronic trade is still strong by more than 40%.

And the total profit of 96 points was raised by the leadership of Walmart in the United States, which reflects a change in the mixture of products that partially returns to the supply of incentives and the reduction of reductions and the transition of the storage of carbon dioxide, which was more focused on food and consumer goods. And as was expected, the net worth of the added value of pressure due to the increase in the value of the technology investments in the United States, which was partially compensated by the reduction of the cost associated with the COVID-19 pandemic, which led to the economy. The company's revenue has been reduced by about 21 points, in general, I feel satisfied with the focus of the company on reducing profits, as the operating income has risen on the basis of a fixed exchange rate of more than 28%, and the share profit has reached 169, i. e. a higher ratio of 43% of the share profit in the first quarter of last year, and the shares that were sold have been 7 cents in the share profit as a result of partial ownership during the quarter, and the share profit has reached the company's 97, which includes the loss of our investments in stocks, in addition to the additional loss of the international sales operations, and the operating income has decreased by about in the US.

The US has a significant share of the US dollar, which is about 4 billion dollars, and that is essentially a increase in the stock market compared to last year, where the stock market levels were much lower due to the lack of stock from the stores. We have intensified the process of re-buying stocks during the quarter, where we re-bought stocks worth 2.8 billion dollars. We still feel completely satisfied with the company's value. And now let's discuss the results of each sector of the company's sector during the quarter. Walmart has achieved another strong quarter in the United States, supported by the motivational spending and the main improvements in the retail sector, as well as the strength of the recovery sector, such as travel, festivals and personal care.

and we are very optimistic about the improvement in the trade of the stores, which has turned into a positive in April for the first time in a year. We also witnessed strong profits in the market share in the retail sector, according to Nielsen's data, and the continuity of the power of e-commerce. The sales of the stores increased by 6 except for the fuel which led to a strong growth over the course of two years by 16 and the sales power is consistent with its diversity through various channels with the growth of e sales by to a strong growth over the past two years with a growth of 16 and the strength of sales is determined by its variety through various channels with the growth of e sales with a growth of 37 and the strategy of Umni still has a positive balance, where customers benefit from all the marketing options that we offer, and we continue to expand the service area of the shopping mall and the delivery of stores, and the sales of customers' trips have led to an increase of the average size of the shopping mall with a growth of 10%, with a decrease in the number of transactions with a growth of 3%, and the management of home clothes and tools and the need for gardens in the direction of strong sales, and the sales of the stock market have decreased in the light of difficult comparison to the market.

However, the sales of the listed stores increased by a percentage of 10% and 20% annually, with a growth of a percentage of 15% and 15% in the supply chains, which is supported by strong pricing, improved storage, and expanded the hours of the store compared to last year. We are pleased with the progressive progress in strategic growth initiatives such as Walmart Concat ads, the e-commerce market, and Walmart services for execution. Advertising revenues have grown strongly by a percentage of more than 100% in the quarter. The overall profit ratio was also strong, with a high of more than 140 points, which which reflects a positive change in the mix of products towards the general supply of profitable and low-cost goods, and contributed to the improvement of the supply of goods also surpassed the effects of closing the care centers in Basra and the car maintenance centers last year due to the COVID-19 pandemic, and SG&A's profits decreased by 49.1%, where an increase in the investment of employees' wages and the increase in spending on technology was partially compensated by a decrease in the cost of COVID-19 by nearly 400 million dollars compared to last year, and the operating income was very strong at nearly 27%, and the stock price rose by 16%, which reflects a strong growth in sales and exceeded the carbon dioxide on the last year's stock.

We continue to monitor the challenges of the sector related to transportation and logistics delays, and our merchants have taken steps to alleviate these challenges, including adding an additional salary to the students. Our business principles continue to improve in the United States, and we are confident that we have the strategy, the organization, and the appropriate employees to serve our customers and achieve our goals this year and later. The international company achieved strong results in its first main announcement, where it reached a net growth of 5.1% in the fixed currency, and this included a strong performance in India, Canada, and China, despite the influence of many markets, except for the end of the because of the return of the COVID-19 pandemic.

It is clear the benefits of re-organizing the strategic reserve to focus on the higher growth markets in an increasing way in the growth of the assets. The sales of the electronic trade increased by about 64%, and its spread rate increased by more than 570 main points to reach about 16% of sales. The fluctuations in the exchange rates contributed to the increase in sales by about 0.7 billion. The sales of the stock markets in Mexico decreased slightly compared to other markets, but it recorded growth in a ratio of between 10% and 20% based on the accumulation for two years. And with the continuation of the rapid acceleration of multiple channels, The company's business in Mexico has advanced significantly in expanding the sources of income and alternative profits within its business system, with the double number of digital scientists and the continued strong growth in mobile phone services.

The sales of the similar stores in Canada rose by 3.4% to 4%, with the growth of the electronic trade sales by more than 115%, despite the challenges it faced later in the quarter due to the government's restrictions related to COVID-19 on non-essential sales such as clothes and general goods. The sales of similar stores in China rose by 1.3%, recorded a growth of 13% on a and the Chinese economy. The Chinese economy has been a strong leader in the past few years, and the strength of the Sands Club's trading and the growth of the electronic trade has continued to be 60% in these results. The FilipeCard website continues to perform its distinguished performance, defending a strong growth and sustainability in the overall value of the goods sold through the electronic trade, as well as positive directions in the number of customers and users monthly, even with the confrontation of the work teams to challenge the COVID-19 cases in India.

The global trade income has witnessed a strong growth of more than 21%, where the profits have benefited from improving the exchange rate and reducing the declines in some markets, in addition to the constant focus on profits. The stock price continued to rise in the Sands Club's trading during the first quarter, with the growth of the market share of 10.6% to 6%, with the exception of fuel and gas, and that returns partially to the supply. Based on the accumulation for two years, the compared sales have risen by nearly 27%. These sales have benefited from increasing the value of the income and the transactions, and we witnessed a strong power in all categories, with the expansion of the home appliances and clothing.

The e-commerce sales have also achieved a strong growth of 47%, due to the power of the service of the street in the club. We are happy to continue the strong directions in the organization, where the organization's income is about 13%. and we achieved a new level of quantity in the total number of units during the quarter, and we witnessed a rise in renewal rates, with strong renewals in the first year and an increase in the number of special subscriptions. The operating income rose by more than 16% in the first quarter, but with the exception of the negative effect of fuel, the profit rose by 33%. And now, let's move on to the expectations. Usually, we do not update the expectations until the second quarter is issued, but we are going through an exceptional period, where the first quarter's thresholds led to a noticeable rebound in sales and profits that were not expected when we submitted our expectations in February.

and the expected in the first quarter and our expectations for a second quarter are better than what was previously expected based on the price of a fixed exchange and without the influence of the loss. We now expect the single-year unemployment rate to rise for the year with a ratio of 5% and 9%, and that the profit-making ratio will rise between 5% and 2%, which is more than our previous expectations that indicated their stability or their rise in a slight way. It is now expected that the unemployment rate of Walmart in the United States will rise by a ratio of 5% and 9% compared to our initial expectations that indicated a slight increase. The second quarter has begun a little better than what was originally in the original, where the incentive spending still benefits some general goods, and we expect to continue to earn the share of the stock market.

We now expect to increase the share profit in the second quarter, with a small percentage, and that with a small increase in the sales of the American Walmart compared to the oil. The COVID-19 pandemic still affects our business positively and negatively. While the first quarter benefited from the incentive spending, especially in the United States, some international markets are still Thank you for your time and attention this morning, and we are happy to receive your questions.

Good morning, this is John Verner. Thank you for the question. Well, allow me first to thank our colleagues and our team in all parts of the country who helped us achieve the results of the quarter, after a year full of achievements last year. They have made great efforts to improve the situation in the shops and through the internet, and we are very proud of their performance in the food sector. I am happy to start with this question. During the quarter, we witnessed a noticeable progress in our storage of food materials, especially after we started the quarter with a strong snowstorm that affected the supply chains. Then, as we mentioned at the end of the quarter, we achieved a distinctive performance that led to an increase in our market share in the food sector.

There is a statement for this matter that we presented in February, which is a summary of our model, and the upper part of this model represents our work in the field of food and consumer goods, in addition to the work of major shopping centers, which is of great importance to the customer experience. And during the past 12 months, and specifically regarding your question about the price, we witnessed an improvement in the price of our goods compared to the market, and our traders are working hard to ensure this improvement. The profits of our market share that we witnessed in the second half of the first quarter are encouraging to the extent, and it is wonderful that we see that we are in a good state when customers need to change their way of shopping.

Thank you.

Hello, Paul.

With you, Preet. Did you hesitate to contact you? Yes, with the beginning of the first quarter. We began to understand the extent of the strength of our main work. As John mentioned, the beginning was difficult due to the weather in February, but we witnessed an improvement in business with the quarter to end. And certainly part of that goes back to the economic economic Al-Mu'tadi, natharan lil adai al-qawiyi wa ma shahidnahu fi bidayat al-rub'i al-thani. Sha'arna anahu min al-ansabi tahdeeth al-tawqawati kama fa'alna. Lam nudali b'ayi tasrihatin hawla al-nusfi al-thani min al-aami. Wa kama dhakartu sabiqan, la tazalu hunaak al-kathir min al-shukuki. Nuwajih tahadiyat wa akhra muwatiyatan, wasatattadihu ma'alimuha khilal al-ashwari al-qaleelati al-mukbilati.

لكنني أعتقد أننا جميعا نشعر بثقة أكبر مما كنا عليه في فبراير وشعرنا أن تحديث التوقعات هو القرار الصائب في هذه المرحلة بول معكم دور أود أن أضيف أنه عندما نتخيل العودة إلى المدارس والهالوين وعيد الشكر وعيد الميلاد وما ترغب العائلات في فعله فإننا نشعر بحماس كبير تجاه إمكانيات ذلك ونشتري الأسهم بما يتوافق مع توقعاتنا شكرا لكم And a quick note about the profits.

Well, I will look a little bit in this topic.

Well, I will start with the profit of the total. It is clear that the profit of the total has increased in a noticeable way in the United States, about 140 points. Basically, you have achieved very strong sales in the general currency this year compared The impact of the last quarter, which was greatly affected by the sale of food and consumer goods, is clear. This affects the overall profit margin. Certainly, the investment of wages was an impact. I will not go into details. We have paid these investments mainly to increase the financial growth in the first quarter, but we expected that. We are happy that we made this decision, and we were certainly ahead of the current situation in terms of increasing wages and increasing technology investments.

But this impact was met by some Thank you very much.

Well, Simeon, this is Do.

I will start with what As for the alternative profit sources, John can share his opinion with us, but I am excited about the market. I am excited about what happens with the delivery services. Walmart's performance was good. We have a clear vision for that. And we started to see that happen in Mexico as well. And as we said before, this strategy is logical for us in all of our main markets. So, profits and losses began to change as we described in February, even more than last year. And this gives us some flexibility. What are you sending me? This is a joke.

I will just add that we are very excited about the three fields mentioned, the market, Walmart Connect service, and Walmart Connect service. As we mentioned before, we are very optimistic about the results of Walmart Connect, as we expect to grow greatly. This platform is a project we have been working on for a while, and as we talked to you a few months ago, it helps to connect buyers, sellers, and suppliers in a unique way in Walmart, and we are optimistic about what we see in it.

As for the delivery services, it is wonderful to see the team expanding its energy. We know that we have a request from the sellers. I have spent many hours listening to the sellers and talking to them and identifying all the tools that we need to add them. So this is important for their work as well. As we mentioned in the last quarter, we achieved a growth of 37% in e-commerce, in addition to a large number that we achieved last year. We have doubled the size of our work almost during the last two years. So we are very excited about these three areas, which are companies that will help us clearly in enhancing our future growth.

As for the energy transition to growth, we have begun to achieve that. The plan that we have put into effect this year is the implementation guide. As you can see in our stores, some of our branches are under great pressure due to the large demand for receiving and connecting. In some stores, we expand the area and direct the capital towards that.

Yes, thank you for the question. This is a new generation. We always had a fundamental principle, which is the importance of daily low prices. During the last quarter, we witnessed an increase of approximately 30% in the prices of our stores compared to last year. Another important thing is the mixture of products. Not only the mixture of products as a whole, but also the mixture of products inside the food section. We are satisfied with the increase in the market share in meat, vegetables, fruits and breads. Even within the food section, the mixture of products was a good match for the sections that enjoy better profits. is better, which enables us to keep up with the prices that we depend on.

The price boom has expanded last year compared to the market. We are satisfied with this boom. We are proud of this price gap and will continue to use all the available resources to keep it. Grocers at Walmart this year are more prepared than any time in the past to manage this gap thanks to the diverse distribution channels they use. Our customers can manage distribution channels in different parts of the company, starting from the shops to the electronic trade platforms and third-party platforms.

Finally, with the sources of income and additional profits that we mentioned through Walmart Conquit, the electronic market and the delivery services, this will help us in the future to ensure the achievement of the most affordable price gap for our customers. I completely agree with you that value may be more important than rest in the past year, but value has always been our main focus.

It is important to emphasize this mentality that John described in relation to low prices, and it applies to the international level as it applies to Sam's Club as well.

Oh Bobo, I remember a conversation that took place between us in the early 90s as a customer assistant in the food section. A room attendant entered with a few of us and said, we are suffering from a shortage in our profits for this month. I want you all to find discounts in prices that you can apply quickly. I brought it to you before the end of the day. Mark of acceptance. I thought I didn't hear it well. How can you reduce prices and increase profits? This is the beauty of the retail business and the diversity in these major business centers. Now with e-commerce, e-market services, e-controllers and Walmart Connect services, we have all these tools that enable us to find ways to advance and do things differently from others.

Therefore, applying additional discounts of 30% currently in Walmart in the United States, for example, puts us in a very good location.

Thank you.

Good morning. Thank you for the question. As you know, 2020 was full of challenges regarding the flow of the stockpile, with all the stages that we passed, starting from the storage phase and even the transfer of people to their homes, then the demand challenges and the supply chain in all parts of the country, which were all related to the pandemic. At the beginning of the quarter, I felt that we were making a good progress, then we faced a snowstorm that led to the closure of a number of sites for a few days, which put some pressure on the supply chain. And with our progress in the quarter, we noticed an improvement in our work in the field of food and consumer goods compared to what it was a year ago.

In general, the performance of general goods was somewhat different. The situation is better in many cases, but there are some sectors that we are still striving to supply, such as air bikes for adults. and some of our consumer electronics. We are monitoring things such as delays in supplies and other factors in the supply chain, and we will follow up on all these issues with a plan to continue the response. But certainly there are some sectors in general that we are still following up on so far.

Thank you.

Certainly. Certainly. Peter, thank you for the question. As you know, in general, we work to improve and increase the energy of the internet for the services of receiving and connecting from the shops. This is something we have been working on for a while and this work has accelerated last year. We manage what we call the use of available spaces, and we now have more available spaces than any time in the past to prepare the requested requests. We also have a larger power supply for shipping from the store, which leads us to the second part of your question, which is the home delivery service. I would like to add two points.

First, we expand our home service from Walmart, which we expanded recently to include a new market. We deliver food and other products from the shops to the homes, including the fridge. We have centers for applying for requests that I asked about, and many of them are the construction guide. We expect to launch these services either at the end of the second quarter or the beginning of the third quarter. So we will be able to talk about it in more detail when it is launched.

Finally, we are excited about our work in the field of delivery for the last mail. We have started to run the first shipping trucks that carry the Walmart trademark in a market here in Arkansas. And we learn a lot with our progress. But we see many opportunities for customer service, whether inside the store, or in their homes, or at the counter if they want to receive from the store. We want to be able to serve customers in the way they prefer. Last year, there was a big change in the desire of people to receive their orders from the store instead of delivering them to their homes. I think we will see this year a bigger balance between home delivery and shopping in stores and receiving from the store with people coming back to go out.

But as Brad previously said, this is an assumption of continuing to improve the situation related to the pandemic and that we will be ready to go if things change.

how we raised our expectations for that profit. This is to give you an idea of how we deal with economic stimulation compared to our main works. However, I can say that it is difficult to determine the effects of economic stimulation accurately, because the groups that benefited from it are the same ones that benefited from economic opening, especially in the general commodity sector. This makes the analysis process more difficult.

Michael, especially the membership in Walmart, this is a new program for us. The main engine for selling memberships is the service of receiving and delivering the goods from the big stores. As we mentioned before, the energy consumption is our problem here. As we said in February, our focus is on the quality of this experience, not its quantity. We want some time to work on the NPS, the NPS. We want to build energy consumption. We are marketing the program, and it will be important to us in the long run, but we have many other ongoing projects, as you know, with the improvement of the customer movement in the shops and the growth of the electronic trade and electronic markets and so on.

We do not think that Walmart Plus should be our main focus at the moment with all these other opportunities. So we will continue to develop it. At some point, I am sure that we will share with you more information about it. I know that there is a request for this because of the direct broadcast service and the talk about subscriptions and memberships these days. This is all, Juno. I don't know if you want to add anything, but this is what I feel now.

Yes, I completely agree. The important thing we do is increase the ability to serve more. We have started working on the centers of application for requests, where we can use sites as main centers for other branches. We have a lot of work to do in the field of distribution series, which will help We will continue to use the appropriate algorithms to withdraw storage from all sides of the network and the customer service. And it is encouraging that we see in the past few months not only an increase in energy consumption, but also a strong performance for electronic trade, and an effective delivery of stores and a strong delivery of distribution centers. Therefore, these capabilities that we work on will form a solid basis for this program in our future journey.

If building a digital relationship with customers is of great importance, and this takes on a variety of forms. For example, we noticed an increase in the downloads of the application and its popularity, and what happened last year specifically in relation to the service of receiving and connecting, where we witnessed a large expansion in the number of digital relationships, which helps us manage data and helps us to be a leading partner in the future. In general, we are optimistic about what is happening in these fields. Yes, and I think that these relationships will continue to grow thanks to technological developments. We are working to improve the application and its basic experiences. It includes acquisition processes such as ZKid and MMD from other ways that will enable customers to actively communicate with Walmart, and we will be able to help them in more aspects of their lives and simplify things for them.

A useful comment so far. Thank you very much.

Certainly, let me answer this question. This is June again. We are very excited to perform the public sector during this quarter. As you mentioned, we made a number of changes to the level of employees during the past year. Perhaps the most prominent of these changes was in July last when we gathered all the sales channels. Traditionally, we had a team of experts working through the internet, in addition to customers in the stores, and we refer to them all by the name of the merchants, because they now run the customer relations through all channels. The team spent a long time thinking and working on the best program to identify the products that will be shown in the stores, which represents the first selling point, 1P, and which represents the third selling point, 3P.

I will give you an example. Last week, I was in Minneapolis visiting one of our suppliers, Nordicware, which makes cooking tools here in the United States. We exhibited the number of products available in their stores, the main products, and the products that will be improved, in addition to the fact that their entire catalog of products is available in the market. Therefore, our merchants can manage the formation of products through various channels, which gives them a greater ability to serve customers with ease and clarity. During the last quarter, we noticed some changes in the way customers trade, and that partly relates to economic incentives, but also to changes in their behavior. As Preet previously mentioned, groups such as personal care products have improved, and travel has started to recover strongly.

And when we look at all the sales groups at Walmart, we can see a lot of what happens to customers all over the country. So we noticed, with certainty, behaviors that reflect a greater opening and return to normal life and meeting people. The health and welfare sector has played an important role in giving millions of tickets in the last quarter, and with some changes that have been seen even last week, we expect some of these changes to continue with the clients, but we will continue to monitor the situation over time.

Thank you.

Good. Customer movement in the stores. As we mentioned, it has changed with confirmation in April, and perhaps a little in the late March. Then we started to reduce some of the large storage trips. compared to last year, the trips were less, with a great focus on delivery operations. This caused a great pressure on the stock market especially on paper products food and consumer goods So when this transformation began this year and we saw numbers reflecting the profits in food products I think that was a mixture of people return to marketing compared to last year, in addition to some improvement in the rate of buying food.

Specifically, among distribution channels, we saw a strong growth in all three channels. As we mentioned, the total sales in the United States reached 6%, with the growth of and the number of stores that are available in the stores to be shipped to the customer's Thank you.

Hello, I am Brad. I appreciate your question. Yes, I will start with the second point related to sales expectations. What you mentioned about the percentage of individual numbers is a wide, true, It is a wide range and when looking at the large numbers of Walmart in the United States, you will find that it falls within a very wide range. So I do not think this explains anything. We are very optimistic about the first quarter, and the second quarter started well. As we mentioned about the overall profit, I will tell you, Juno, you can start. The biggest change, of course, was the power of general goods sales that we witnessed this year compared to the power of food and consumer goods sales that we witnessed in the first quarter of last year.

And when you start to notice a power in general goods sales, which is what we witnessed during the past few weeks, the decreases are less, and this achieves many additional benefits for Hamish.

The total profit Let me add some points about the issue of Hamish's profit. The third point that I would like to mention is that the market is growing rapidly, and In the end, our storage level has risen, and this is a good thing. Last year, we faced a major shortage in the storage of goods and general goods, so I feel more comfortable in terms of our storage. As Preet mentioned, our storage is clean, and we are fully committed to the storage of end-of-season and seasonal goods, so we are very comfortable with this matter.

Finally, I would like to point out that the factors of the growth of e-commerce, including profit margins, were strong. The ownership of the merchant for all sales channels within their responsibility, based on a specific category and what the client wants, contributes to the enhancement of the factors of the growth of e-commerce, which include factors such as profit values, Walmart Connect and others. Excellent. Thank you. I appreciate your call.

Thank you.

With you, John. Let me answer your first question. The performance of the market share in general goods, we think it is almost constant compared to last year, and we run it by a month. Our data for February and March. So we are satisfied with the performance during the first two thirds of the quarter. And as you mentioned, we noticed strength in all our products and in the 20th quarter. So I think we are in a good situation. We are satisfied with the market share compared to last year. We are excited about the performance in categories such as home appliances and clothes during this quarter, and the situation that we are enjoying in the second quarter.

Certainly, there are some difficulties in the supply chain as we mentioned earlier, and some categories that witnessed high demand and pressure in the supply chain. But we are watching the situation with confidence and we feel the satisfaction of the improvements in the storage in all areas of the company, including distribution centers and stores. But once again, I think that what encourages us most is the increasing demand and the vision of things such as travel and other activities that return to their nature, and the ability to prepare customers is of great importance in our future journey.

As for the second part of your question about distribution services, we have a number of improvements in the energy supply that will enter the operating area this year. So, we are excited for the impact that these improvements will have not only on the interests of the customers, but also on our sellers. Our sellers are looking for more services and the ability to ship, and this is a great way to enable small companies to grow. So, over time, we will see more energy coming in to our distribution services.

Good morning, Yaskut. With you, John. In particular, your question about e-commerce, we are optimistic about the benefits of e-commerce, which are the amounts of contribution, i. e. the benefits of the total profit, including the cost of shipping. We are also optimistic about the sources of alternative resources included in e-commerce, such as the services of the demand in the market. As you mentioned earlier, we work to expand our production. We know that we have a demand from the sellers, and we are very proud of the three-year growth in the Walmart Conquer service. So, all these factors are useful in calculating profits and losses for electronic trade.

As for the detailed analysis, we do not distinguish the difference between stores and electronic trade because the boundaries between them have become unclear after we have transformed into a model of multiple channel business. We have merchants who charge us for all channels according to the category. Stores work as stores and reception centers, and in some cases as distribution centers. We have distribution centers that work as distribution centers that connect orders directly to homes, and sometimes it is charged to a storage storage to integrate with the order and then added to the final connection network. Therefore, it is impossible for us to separate these factors due to the border interference. But in general, I would say that the team is making great efforts to improve the balance of the contribution and the mixture of products, not only within the company as a whole, such as general goods in comparison with other products, but also within the categories, so they are making great efforts to improve the balance of the contribution.

This is very useful. Thank you.

Hello, I'm Tshak with you, Preet. Yes, I think we see a mix of the two. I mean, we see customers coming out and spending again. Spending rates are good and income rates are good, but spending rates are still close to their highest levels at all, which pushes us to believe that there is a possible demand with our entry in the second half of the year. Therefore, from many aspects, the salaries of the consumers, except for some sectors that were severely affected by the COVID-19 pandemic, are very strong.

A large part of this returns to the bonds of motivation and money that have been spent on the economy. In both cases, this indicates the existence of a future demand.

the We will continue to work on this issue. These capabilities will help people reach care towards a healthy care system based on high-value results and easy access, and serve a wide range of needs. And it also ends with a successful commercial project that is in harmony with a series of large grocery stores. We have been working on this strategy and we are implementing its steps. And if we look at our acquisition of Carzone and our last acquisition of MEMD, we will see that we add some capabilities to the side of those that we build ourselves.

Well, we will return to you with this question, Ruby.

Ruby, with you, John. I would like to once again confirm our enthusiasm for the idea of a variety of health care solutions for Walmart customers. The pharmacy and pharmacies have done a good job during the past year despite all the challenges they faced. They have opened the service of transportation to cars and transportation to homes. We now have central pharmacies that help us reduce costs and improve efficiency, in addition to the group of services that they provide. Of course, it varies from one province to another, but the way I hurried to find ways to help in feeding the country was really amazing. I was in one of our local shops last night, and just seeing a number of people getting their tickets was encouraging to the extent.

And as Doug said, the market has changed last year. We opened a number of restaurants, and we are still opening more. We were excited about the opportunities that restaurants have, then a large part of health Thank you.

We hope you will notice, in addition to the support we receive in the United States, that we are witnessing an increasing growth in the company. As I mentioned earlier, I visited many shops in the last quarter and noticed an improvement in standards and a rise in the prices of stocks in the face of the challenges imposed by the pandemic. We also enjoy a big volume and strength in Sam's Club. The international sales department achieved excellent performance in the last quarter, and it was one of the best shares we have seen in a while. and the work that Judith and her team are doing there will bring fruit. As you know, the situation of the virus in India is critical, and we will not only support citizens, but the country as much as we can to overcome this crisis.

I am sure that we will face a city and other countries in the coming weeks because this pandemic has not ended yet. But regardless of the pandemic and the economic motivation, Thank you all.